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DennisG7 (Georgia)
Posts: 155
Posted:
At the end of of Oct. our 189 member HOA will have a quarterly member meeting. The meeting has been moved from July to Sep. to Oct. A number of issues will most likely be discussed and at the top of the list is some really BAD advice our HOA BOD and members got from the Mgmt Co. recently. As a result the HOA landed in court and we have now spent many thousands of dollars fixing a project that I have discussed in the previous posts.

I am not sure why the Management Company is at every member meeting and why they stay for the entire meeting. In the past they appear to provide "cover" for the BOD on issues. Other times they take the lead in conducting the meeting and guiding it in a way that showcases all the great things they do for us. (Full Disclosure: I have suggested we look for an alternative to this company. It's my belief that our financials are not accurate among other things.)

We never have a quorum at meetings so no motions can be made and no voting can take place. How can we get our BOD to conduct a meeting without the management company being there? Ask them to leave?
DennisG
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Review the contract first before asking them to leave. Is it a requirement for them to attend? Remember the relationship to the MC is that they are a sub-contractor to the HOA. NOT the other way around. The HOA most likely isn't required to have the MC at their meetings. Not even if they are open. Because the MC is not a member of the HOA. They would be invited guest.

I would review the current contract and make sure it's only 1 year term. Never sign a multi year contract even if it saves money. Nothing wrong with renewing a contract every year with the same contractor. It may even need tweeked anyways. Time to get a committee together and find some new candidates/terms for a MC.

Former HOA President
DouglasK1 (Florida)
Posts: 2,046
Posted:
Quote:
Posted By DennisG7 on 10/09/2017 5:51 AM

We never have a quorum at meetings so no motions can be made and no voting can take place. How can we get our BOD to conduct a meeting without the management company being there? Ask them to leave?
DennisG

This seems to hinge on whether the board wants them there or not. If they do, it doesn't seem to me that the board would ask them to leave. In any case, if the MC is disinvited, that should be communicated before the meeting, not by kicking them out once the meeting is started.

As far as no quorum, it would be up to members who want some business to be conducted to knock on doors, make calls, send emails, or whatever to to motivate enough members to attend. If there is still too much apathy, then the majority has spoken without speaking.

What is the purpose of quarterly members meetings anyway? In most associations the board meets periodically to conduct business, and the members meet annually to elect board members.

Escaped former treasurer and director of a self managed association.
FredS7 (Arizona)
Posts: 927
Posted:
The board can require that the management company representative leave at any time.

The board can choose to have the management company representative at all meetings.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Dennis

It is the BOD's choice.
DennisG7 (Georgia)
Posts: 155
Posted:
Thanks for your responses. I agree, if the BOD wants them there then until the BOD instructs them not to attend the issues is settled. The recent events surrounding a project that has just been completed and has had a cost overrun of nearly 300% ($16K vs $43K) appears in some part to have been as a result of our HOA BOD listening to the the Mgmt. Company. Don't get me wrong. The BOD is largely at fault but the Mgmt. contributed to the problem by giving them terrible advice.

Having a face to face meeting at the end of October with the BOD regarding this issue and others without the Mgmt Co. present allows those few of us to engage in some serious discussions with interference from the Mgmt. Co. It has been my impression that the BOD defers to them in areas that are clearly BOD/member decisions.

The apathy amongst most of the homeowners is apparent. I have knocked on many doors in the past. We have sent notices about meetings, we have posted it on the bulletin board. We have send messages out via Nextdoor. I have attended all but 3 member meetings since I built in 2002. After 2004 attendance fell to around 8-12 people per meeting. Even on the last election (Dec 2016) we had 13 people. No proxies so not enough for an election. The current board is a repeat from 2016.

Oh I looked at our last contract with the mgmt. company. They are only required to attend the election meeting (Dec). Other Quarterly meetings are optional. BTW, a quarterly review meeting allows everyone to see what has recently been done and what is planned in the next quarter. I'd say from looking at the minutes over the past year we get about 25% done. The rest is feel good talk but no action is taken. Examples: install a new light in the parking lot or add 2 new security cameras in the common area. Both listed nearly every quarter but never done. Appreciate your comments.
DennisG
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Dennis

You are basically peeing against the tide on this cost overrun issue. It is done. It is over. Question as much as you want but it seems your are about the only one interested.

Either take legal action and/or change the makeup of the BOD versus complaining on here. Sorry to sound so harsh but so far you have done little but complain. Take some action.
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By DennisG7 on 10/09/2017 9:27 AM

Having a face to face meeting at the end of October with the BOD regarding this issue and others without the Mgmt Co. present allows those few of us to engage in some serious discussions with interference from the Mgmt. Co.

I've always been under the opinion that if you are not willing to say something to someone face to face, you shouldn't be saying it at all.

Who cares if the MC is there or not.

If there are a lot of members at the meeting voicing the same opinion about the MC two things should happen:

1) The Board will understand the memberships position.
2) The MC/PM has an opportunity to learn.
DennisG7 (Georgia)
Posts: 155
Posted:
Appreciate your comment Re: Peeing against the tide. I have been laying the groundwork which sometimes requires waiting. The pavilion project was just completed and a CO issued about 30 days ago. The costs are yet to be fully known to members as they have NOT released. The last bill went to the HOA BOD only a couple weeks ago.

Under GA Code we, HOA members, are entitled to see expenses, costs, etc once we make a written demand. That demand has been made twice (late 2016) in writing to the HOA BOD and there has been no response. About 10 days ago a certified letter was sent to our registered agent asking for all the documents related to the project. It was received and signed for. I am awaiting response on when they will be made available. I asked for a written response in case they deny our request.

Legal action is expensive. I am retired and have tried to go the less expensive route in getting to the bottom of this. If the documents requested are not made available we will seek legal help. Appreciate your comments.
DennisG

DennisG7 (Georgia)
Posts: 155
Posted:
I have no problem confronting the MC. I did so recently with the MC President. Her primary focus appears to be building a larger client base of more HOA's. In speaking with a few other HOA's they don't get high marks. The problem has been that when they arrive for a meeting they seem to take control and have been the primary cause of several very bad decisions the board has made recently. A good example is when the County Building Division presented the HOA with 4 different violation notices on construction of our pavilion, the biggest violation being we never obtained a building permit and it was never inspected. In late Oct. 2016 at a member meeting the MC told the HOA and it's members to "Ignore the violation notices, everyone builds without them." I was stunned to hear the MC say this. Unfortunately the BOD followed the MC advice. In Dec.the HOA was taken to court by the county. Thousands in court costs, fines and attorney fees. All costs buried in our monthly accounts/expenses by the MC who prepares the document. The BOD did not say a word...they don't want us to see it either.

Without the MC present we may be able to get the BOD to listen to members. An online review from Google and Yelp on this MC shows 5 recent feedback comments. All 5 respondents posting gives the MC 1 STAR out of 5. That tells you something.
DennisG
TimB4 (Tennessee)
Posts: 21,059
Posted:
Quote:
Posted By DennisG7 on 10/09/2017 11:26 AM

The problem has been that when they arrive for a meeting they seem to take control

Sorry, thats not a problem with the MC, that's a problem with the Board and, more specifically, the President who doesn't take charge.

That said, I can understand why an PM might try to take control.

Quote:
Posted By DennisG7 on 10/09/2017 11:26 AM

and have been the primary cause of several very bad decisions the board has made recently. A good example is when the County Building Division presented the HOA with 4 different violation notices on construction of our pavilion, the biggest violation being we never obtained a building permit and it was never inspected. In late Oct. 2016 at a member meeting the MC told the HOA and it's members to "Ignore the violation notices, everyone builds without them."

And that is also a problem with the Board.

Common sense says otherwise and failure to have common sense is a character defect (in my opinion). Again, the Board had a choice - take the advice or look into the issue themselves (trust but verify).

You have a bad Board.

That is what needs to be fixed.
DennisG7 (Georgia)
Posts: 155
Posted:
Agree the BOD is very bad. When they came in they had only one agenda, build the Tennis Pavilion! We are paying dearly. I sent an email to the Treasurer asking if we might find a bank that can offer more the .25% interest. Many in the area seem to offer around 1% or a little more. She got so upset with my question she forwarded it to the President. I never got an answer. They appear to be clueless as to how to do things and look to the MC for help. That will be solved in Dec. We have a new slate of people that I hope will step up. (Yes, I'm one of them.)

As to the MC. They do take over meetings. When they give "guidance" as they have recently given and when they present an annual expense report and monthly reports that appear to be in error I think we need to find someone else. Several members have suggested that we look at an acct/CPA firm to manage the bills/expenses. We currently pay nearly $12K annually for them to send out about 15 bills a month and collect dues Jan-Mar. They do not do CCR enforcement as many many homeowners complained so much that it was stopped 2 years ago. So $12K for sending out payments seems a bit much to me.
DennisG
TimB4 (Tennessee)
Posts: 21,059
Posted:
We have 130 members. Collect assessments monthly.
Issue 3 to 10 checks per month.

We are self managed.

We have utilized a bookkeeper (someone from within the Association) in the past to collect the mail, make ledger entries, prepare and make deposits and send late notices. Cost was $4,200 year. Treasurer paid the bills, kept the financials, spot checked the ledgers and made financial reports to the Board.

Unless membership apathy is extremely high, I'm not sure why you aren't self managed.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
We are 112 owners, 40 duplexes and 32 single family homes. Our annual budget is $65K. Our largest expense is landscaping ($31K) as we do all landscaping including each homes landscaping. Our MC handles collections (via bank lock box system), payments, etc. Our MC fee is $11K. The MC does it all and in their language, for $98 per year (or $8 per month), per door.

I think we get a bargain as we basically do nothing except keep an eye on the MC.
GenoS (Florida)
Posts: 4,276
Posted:
For comparison since I know JohnC46's community is similar to mine in many ways...

We are 100 owners, 30 duplexes and 40 single family homes. We have a clubhouse, a pool, a gate house, a mail house, and a maintenance building. We are on 25 acres and everything outside of the footprint of the homes is common property and that includes all sidewalks and driveways. We have 0.8 mile of paved roads, two aux parking lots and 2 tennis courts. The HOA is responsible for re-roofing and exterior painting of all CBS homes. 80% of our reserve replacement costs are in the roof & painting reserves.

Our annual operating budget is $250K and we contribute an additional $86K to our reserves. Our largest expense is landscaping as we do all landscaping including each home's landscaping. Our landscaping budget is $100K (lawn mowing, tree trimming, bug spraying, fertilizing, landscape replacement and detention pond weed control). Our bookkeeper handles collections, payments, sending out checks, etc. Our bookkeeping fee is about $9K and annually our outside CPA costs another $2K a year to prepare the annual financial report.

Our second largest expense is maintenance. We have a contractor "maintenance man" who gets $50K a year. We pay an additional $25K for powerwashing, pool maintenance, lake fountains, irrigation pumps and sprinkler head replacements.

We're self-managed and our bookeeper has offered to "do it all" for us in exchange for $120 per year, per door. There was a MC here about 25 years ago that lasted a year before the board cancelled the contract because it was "too expensive" and we could "do it better ourselves". That has led slowly over time to a large range of problems no one wants to address. If all we had to do was keep an eye on the MC it would be easier to get people on the board and our committees. The same 6-10 people have been doing all the heavy lifting for the better part of a decade. The faces change but it always seems to be only about 6-10 people doing all the work.

JohnC46 (South Carolina)
Posts: 14,265
Posted:
I believe we could self manage, especially with a hired book keeper, but we have been spoiled by letting the MC run things and no one has ever been pro-active enough to step forward and suggest we go self managed. I do not see it happening here without a mind set change and some aggressive people stepping forward.

On additional note. We have no amenities of any type. Our streets are public but we are a dead end neighborhood so no outside traffic. We have public water and sewage.

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